Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648b5ba22c41_1456648b5b9b531f.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648b5bab5391_1466648b5ba56d37.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648b5bb54120_1466648b5baed8f7.jpg)
Transcribed Image Text:
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 850,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $20.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment This Year Last Year $ 1,810 $ 710 12,800 10,000 9,950 8,400 1,850 2,200 26,410 21,310 6,500 6,500 19,700 26,200 19,500 26,000 Total assets Liabilities and Stockholders' Equity $ 52,610 $ 47,310 Current liabilities: Accounts payable Accrued liabilities $ 10,000 $8,550 700 950 Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities 350 350 11,050 9,850 5,000 5,000 16,050 14,850 Stockholders' equity: Common stock 850 850 Additional paid-in capital 4,450 4,450 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 31,260 3457 5,300 31477 5,300 27,160 36,560 32,460 $ 52,610 $ 47,310 Comparative Income Statement and Reconciliation Weller Corporation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses. Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 84,000 54,500 29,500 Last Year $ 79,000 50,500 28,500 9,000 8,500 12,500 11,500 21,500 20,000 8,000 8,500 600 600 7,400 7,900 2,960 3,160 4,440 4,740 340 4,100 27,160 680 4,060 23,100 $ 31,260 $ 27,160 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio % 5. Book value per share Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 850,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $20.50. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment This Year Last Year $ 1,810 $ 710 12,800 10,000 9,950 8,400 1,850 2,200 26,410 21,310 6,500 6,500 19,700 26,200 19,500 26,000 Total assets Liabilities and Stockholders' Equity $ 52,610 $ 47,310 Current liabilities: Accounts payable Accrued liabilities $ 10,000 $8,550 700 950 Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities 350 350 11,050 9,850 5,000 5,000 16,050 14,850 Stockholders' equity: Common stock 850 850 Additional paid-in capital 4,450 4,450 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 31,260 3457 5,300 31477 5,300 27,160 36,560 32,460 $ 52,610 $ 47,310 Comparative Income Statement and Reconciliation Weller Corporation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses. Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 84,000 54,500 29,500 Last Year $ 79,000 50,500 28,500 9,000 8,500 12,500 11,500 21,500 20,000 8,000 8,500 600 600 7,400 7,900 2,960 3,160 4,440 4,740 340 4,100 27,160 680 4,060 23,100 $ 31,260 $ 27,160 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.) 1. Earnings per share 2. Price-earnings ratio 3. Dividend payout ratio % 4. Dividend yield ratio % 5. Book value per share
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Find the x-values where the following do not have derivatives. + -6 + y 8 0 6 X
-
You and your family and friends are planning to host a graduation party at the end of the school year. Construct a WBS for this party.
-
PrideTalk Corp., reporting under ASPE, has provided the following information regarding its intangible assets : 1. A patent was purchased from Marvin Inc. for $1.2 million on January 1, 2013....
-
An increase in which component of quality costs is most likely to result in a decrease in the other three components? a. prevention costs b. inspection costs c. internal failure costs d. external...
-
Jeffrey Mogul is a Hollywood film producer, and he is currently evaluating a script by a new screenwriter and director, Betty Jo Thurston. Jeffrey knows that the probability of a film by a new...
-
A worker is lifting a box from a starting vertical height of 34 inches and placing the box at a vertical destination above the shoulders, approximately 65 inches high. The box is held reasonably...
-
About 4% of homes have solar panels to produce electricity. A certain city has 2,400 homes. 13. Show that it is acceptable to use a Normal model for this situation. 14. What are the mean and standard...
-
Determine the mark-up percentage on absorption cost.
-
Barnes Company reports the following for its product for its first year of operations. Direct materials $ 3 3 per unit Direct labor $ 2 3 per unit Variable overhead $ 1 0 per unit Fixed overhead $ 7...
-
On November 1, 2022, Miller Web Services borrowed $100,000 from Big Bank. The loan plus interest is to be repaid on January 1. 2023. The interest rate on this bank loan is 6%. Prepare all entries...
-
What is Sales Force Automation Function inside the Sales Marketing System. Describe Brielfy.
-
Find the domain of the function. g(x) = 2 X x+10x+21
-
A recent study at a local college claimed that the proportion, p, of students who commute more than fifteen miles to school is no more than 25%. If a random sample of 260 students at this college is...
-
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
-
Information taken from Applied Technology's comparative balance sheet is provided in the Working Papers. Your instructor will guide you through the following problem. 1. Calculate the following...
-
Information from Razure Adventures Companys financial statements for the current year are provided in the Working Papers. Work independently to complete the following problem. 1. Calculate the...
-
As a form of advertisement, financial advisors often publish in their local newspapers short articles about financial planning issues. The articles are meant to motivate readers to manage their money...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App